Declining sponge iron prices and low buying interest from sponge iron manufacturers may put Odisha lump prices under pressure.
Odisha based merchant miners highlighted that they are waiting for price stability in sponge iron market but dull bookings in recent past may lead to price reduction in lump. Lump prices may fall by INR 100-200/MT in the coming days, if downturn in sponge iron prices continues. However for fines, prices are expected to remain stable as of now.
Recently Indian sponge iron prices hit an all time low in last week of May’16 amid sluggish market.
Iron ore sales volume from Odisha fall short of volume of production
While on one hand Odisha merchant miners produced 7.02 MnT iron ore in Apr’16. They managed to dispatch only 5.22 MnT iron ore. Also as per market sources iron ore dispatches of merchant miners has not remained decent in the month of May’16. Thus it can be inferred that iron ore dispatches are not in tandem with production and miners are having inventories at their mines.
Odisha iron ore prices as on 01 Jun’16
|
Miner |
Size (mm) | Grade (Fe%) |
Prices in INR/MT |
| Rungta Mines (Joda)* | 5-18 | 62 | 2,650 |
| 10-30 | 62 | 2,500 | |
| Fines | 63 | 1,550 | |
| Serajuddin Mines | 5-18 | 63 | 2,150 |
| Fines | 63 | 1,300 | |
| Essel Mining (Koira) | 5-18 | 62 | 2,150 |
| 10-30 | 61 | 1,500 | |
| Fines | 63 | 1,175 | |
| KJS Ahluwalia | 5-18 | 63 | 2,225 |
| 10-30 | 61 | 2,000 | |
| Fines | 63 | 1,100 | |
| Kaypee Enterprises | 5-18 | 63 | 2,150 |
| 10-30 | 62 | 2,000 | |
| Fines | 63 | 1,150 | |
| Indrani Patnaik | 5-18 | 63 | 2,150 |
| 10-30 | 62 | 2,050 | |
| Fines | 62 | 1,250 |
Ex-mines prices in INR/MT
*Prices as per loaded to wagons & inclusive of Royalty, DMF & NMET
Source: SteelMint Research
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